Section 25104 Of Article 1. General Provisions From California Revenue And Taxation Code >> Division 2. >> Part 11. >> Chapter 17. >> Article 1.
25104
. In the case of a corporation liable to report under this
part owning or controlling, either directly or indirectly, another
corporation, or other corporations, and in the case of a corporation
liable to report under this part and owned or controlled, either
directly or indirectly, by another corporation, the Franchise Tax
Board may require a consolidated report showing the combined net
income or such other facts as it deems necessary. The Franchise Tax
Board is authorized and empowered, in such manner as it may
determine, to assess the tax against either of the corporations whose
net income is involved in the report upon the basis of the combined
entire net income and such other information as it may possess, or it
may adjust the tax in such other manner as it shall determine to be
equitable if it determines it to be necessary in order to prevent
evasion of taxes or to clearly reflect the net income earned by said
corporation or corporations from business done in this State.